President Trump’s Chinese Tariff Announcement Dampen Sentiment
$DIA, $SPY, $QQQ, $RUTX, $VXX
Wall Street dipped Monday, with tech shares leading the retreat, as investors prepared for another tranche of US tariffs on Chinese goods.
This latest round of tariffs is expected to slap a duty of around 10% on $200-B worth of Chinese goods. Beijing has responded by saying it may decline a US offer to resume trade talks if the duties are implemented, adding it’s not going to negotiate with “a gun pointed to its head.”
The S&P 500 and the DJIA held modest losses for much of the session.
The consumer discretionary sector and the top-weighted technology sector, which hold the other FAANGs finished at the bottom of the sector standings, losing roughly 1.3% apiece.
Financials (-0.4%) and health care (-0.3%) also finished in the Red, but the 7 remaining groups finished in the Green. Gainers were limited though, with no group adding more than 0.5%.
Overseas, stock markets in Asia opened the week on a lower note, weighed down by the threat of new tariffs, with China’s Shanghai composite losing 1.1% and Hong Kong’s Hang Seng tumbling 1.3%.
European equity markets also slid, but losses were more modest, with Germany’s trade-heavy DAX shedding 0.2%.
US Treasuries were under pressure early, pushing the yield on the benchmark 10-yr note as high as 3.02% its highest level in 4 months. However, buyers emerged later in the session, leaving the 10-yr yield higher by just one basis point at 3.00%.
Meanwhile, the US Dollar (.DXY) Index finished off 0.5% to 94.07.
Monday, the major US stock market indexes finished at: DJIA-92.55 at 26062.12, NAS Comp -114.25 at 7895.79, S&P 500 -16.18 at 2888.80
Volume: Trade on the NYSE came in at 732-M/shares exchanged
- NAS Comp +14.4% YTD
- Russell 2000 +10.9% YTD
- S&P 500 +8.1% YTD
- DJIA +5.4% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis
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